Will the IRS flag me for sending a large amount of cash overseas through Western Union?

Wait, so even if it's my own money that I've already paid taxes on, I still need to report it when sending it to family overseas? What if I'm just helping relatives buy a house or something? Does the IRS actually tax this money twice?

You generally don't have to pay additional taxes on money you're sending abroad if it's already been taxed as income. The requirements are about reporting, not taxation. The government wants visibility into large sums moving internationally to prevent money laundering and tax evasion. If you're gifting more than $17,000 to any single individual in 2025, you may need to file a gift tax return (Form 709), but this usually doesn't result in actual taxes until you exceed your lifetime exemption (currently around $13.6 million). Different rules might apply depending on who you're sending the money to and why.

How exactly does taxr.ai work? Does it just tell you which forms to file or does it help you complete them too? I'm in a similar situation but sending money to pay for my parents' medical bills in another country.

I'm skeptical about these online tax tools. How does it handle the difference between gifts vs loans vs investments when you're sending money to family? Because that changes the reporting requirements, right?

It starts by asking detailed questions about your specific situation - where the money came from, who you're sending it to, your relationship to them, and the purpose of the transfer. This helps determine whether it's a gift, loan, or investment, which all have different requirements. The tool then gives you a custom report with the exact forms you need along with instructions for filing them correctly. It doesn't automatically file the forms for you, but it gives step-by-step guidance that's specific to your situation rather than generic advice. It also flags potential issues like structuring risks based on your transfer plans.

How does this Claimyr thing actually work? The IRS phone system is notoriously awful - are they somehow jumping the queue or what?

This sounds like BS honestly. I've heard of services claiming to get you through to the IRS faster, but it's probably just charging you for something you could do yourself with enough persistence. Did you actually resolve your issue or just talk to someone?

It works by continuously calling and navigating the IRS phone system for you. When it finally gets through the queue, it calls you and connects you directly to the IRS agent. It's not jumping the line - it's just automating the frustrating process of calling repeatedly and waiting on hold. I definitely resolved my issue. The IRS agent I spoke with reviewed my information while on the phone and confirmed which specific documentation I needed to submit to close the inquiry. Without getting that clarity, I might have sent insufficient documentation or unnecessary information, potentially triggering a more extensive review.

I honestly hadn't considered the Western Union limits. Do you know if banks charge a lot more for international wires? I was hoping to avoid the high fees but maybe for this amount of money I should just do it properly through my bank.

Banks typically charge $35-75 per international wire transfer, which seems high for small amounts but is actually quite reasonable for $135k. That would be less than 0.1% in fees, compared to Western Union which might charge 1-3% for large transfers. More importantly, your bank will handle all the required regulatory reporting for you and provide proper documentation of the transfer. This creates a clear paper trail showing you followed proper procedures, which helps avoid red flags with the IRS. Just be completely upfront with your bank about the purpose of the transfer.

Is there a specific form we should file with our taxes when we send money internationally? Or is it just the FinCEN form that was mentioned earlier?

The FinCEN forms (like FBAR - Form 114) are separate from your tax return and filed directly with FinCEN. On your actual tax return, you may need Form 8938 (FATCA reporting) if you have significant foreign financial accounts or assets. For gifts over the annual exclusion ($17,000 per recipient in 2025), you'd file Form 709 with your tax return, but this is usually just informational - you typically won't owe gift tax unless you exceed your lifetime exemption. The key is that these are reporting requirements to show compliance, not necessarily additional taxes owed.

This is really helpful advice, especially about documenting everything. I'm wondering about the timing aspect you mentioned - if I spread the $135k over two tax years (say $75k in 2025 and $60k in 2026), would that actually help with reporting thresholds or just create more paperwork? Also, do you know if there are any advantages to sending it all at once versus multiple smaller transfers? I want to make sure I'm not accidentally making this more complicated than it needs to be.

@Eloise Kendrick Great question about timing! Spreading it across tax years won t'really help with the main reporting thresholds - the FBAR requirement is based on having over $10k in foreign accounts at any point during the year, and CTRs trigger for any single transaction over $10k regardless of timing. However, splitting it might help with gift tax reporting if you re'sending to multiple recipients. You get a $17k annual exclusion per recipient, so if you re'sending to several family members, you could potentially stay under the gift tax reporting threshold for each person in each year. The main advantage of sending it all at once is simplicity - one wire transfer, one set of documentation, less chance for errors. Multiple transfers create more paperwork and more opportunities for compliance mistakes. Plus, as others mentioned, trying to break it up specifically to avoid reporting requirements could be seen as structuring, which is illegal. Given the amount involved, I d'really recommend getting a consultation with a tax professional before deciding on timing. They can model out the reporting implications of different approaches based on your specific situation and help you choose the cleanest path forward.

Thanks for sharing your experience, Pedro! Your point about being transparent is so important. I'm curious - when you got that inquiry letter from the IRS, how long did the whole process take to resolve? I'm worried that even if I do everything correctly, I might get stuck in some lengthy back-and-forth with the IRS that could cause problems for my family who are counting on receiving this money by December. Did you have any issues with delays in the actual transfer while dealing with the IRS inquiry?

@Emma Davis The inquiry letter resolution was actually much faster than I expected! The IRS gave me 30 days to respond with documentation. Since I had everything organized bank (statements, pay stubs, and the letter explaining the transfer purpose ,)I was able to respond within a week. They sent a closure letter about 3 weeks later saying no further action was needed. The key thing is that the IRS inquiry came AFTER I had already completed the wire transfer - it didn t'delay or interfere with sending the money at all. The bank processed my wire transfer normally, and my sister received the funds within 2-3 business days. The IRS review was completely separate and happened months later as part of their routine compliance checking. So don t'worry about the transfer itself being delayed by potential IRS questions. As long as you re'working with a legitimate bank and have clean documentation of your fund sources, the money will go through normally. Just make sure to keep copies of everything for when/if they follow up later. Your December timeline should be totally fine!

This is exactly the kind of detailed, practical advice I was hoping to find! @Cameron Black, your point about calling the bank's international wire department first is brilliant - I hadn't thought about getting their guidance before starting the process. I'm curious about one thing you mentioned: when you said "questions came up later," was this from the IRS or from the bank during the initial transfer? I want to make sure I understand the timeline of when documentation might be requested. Also, did you end up needing to file any of the FinCEN forms yourself, or did the bank handle all of that reporting automatically? Thanks for sharing such a detailed breakdown of your experience - it's really helping me feel more confident about moving forward with this!

@Liam O'Connor Great questions! The "questions that came up later" were from the IRS, not the bank. The bank handled everything smoothly during the actual transfer process - they just needed to verify my identity, confirm the wire details, and collect the required information for their reporting (which they handled automatically). The IRS inquiry came about 4-5 months after I completed the transfer. It was just a routine letter asking me to document the source of the funds I had transferred overseas. Since I already had all my documentation organized, responding was straightforward. Regarding FinCEN forms: The bank automatically filed the Currency Transaction Report (CTR) for the large cash transaction. However, I did have to file the FBAR (FinCEN Form 114) myself the following year since the money briefly went through foreign accounts. The bank can't file that one for you - it's based on your total foreign financial account activity throughout the year. One tip: when you call your bank's international wire department, ask them specifically which reporting they handle versus what you'll need to file yourself. They're usually very knowledgeable about the requirements and can give you a clear breakdown of responsibilities. This helped me avoid any surprises come tax season!

@CosmicCaptain I'd definitely recommend getting professional tax guidance BEFORE making the transfers, especially since you're dealing with multiple countries. Each country may have different reporting requirements on their end, and the professional can help you structure everything optimally from the start. Regarding multiple countries - this shouldn't significantly complicate the US reporting requirements (you'll still file the same FinCEN forms based on your total foreign account activity), but it might affect gift tax considerations if you're sending different amounts to different recipients across countries. A tax pro can help you plan the timing and amounts to minimize paperwork while staying compliant. One thing I learned from this thread is that being proactive with documentation and professional guidance upfront saves a lot of stress later. For the amounts we're all discussing, the cost of professional consultation is really just insurance against making costly mistakes. Better to spend a few hundred on advice now than potentially deal with compliance issues worth thousands later!

@PixelPioneer Thanks for bringing up the KYC requirements - that's a really important point I hadn't considered! I'm actually dealing with a similar medical expense situation and was wondering if the nature of the transfer (medical emergency vs general family support) makes any difference in how banks or the IRS view these transactions? Also, your point about the $17k gift exclusion per recipient is helpful. I'm sending to my parents jointly for their medical bills - do you know if that counts as one recipient (joint) or two separate recipients for the gift tax exclusion purposes? I want to make sure I understand the rules correctly before I start the process. The reassurance about these being routine transactions really helps with the anxiety around this whole process. It's intimidating when you're dealing with these amounts for the first time, but hearing from people who have actually been through it makes it feel much more manageable.